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The Rise of the Global Healthcare Industry: Opportunities and Challenges

August 19, 2024
in Global, Top News
The Rise of the Global Healthcare Industry: Opportunities and Challenges

Businessman holding global network and data exchanges over the world 3D rendering

The Dawn of a New Era in Global Healthcare: Innovations Propel Industry Growth

In recent years, public attention to health has been steadily increasing. With the continuous rise of chronic diseases such as cancer, diabetes, and hypertension, the global healthcare industry is entering a new era full of opportunities. Technological and non-technological innovations continue to improve the quality and convenience of medical services, and reduce medical costs. Technologies such as genetic sequencing, cell therapy, artificial intelligence, and wearable health monitoring devices are thriving. Telemedicine can enable basic and remote medical institutions, enhancing medical accessibility. ‘Medical special zones’ help to meet the increasingly diverse and multi-level choices of people. With new technologies, products, and models emerging, the global healthcare industry is expected to experience rapid development in the future.

According to the latest report released by the global market research organization Technavio, by 2028, the global medical device market will increase by 194.3 billion US dollars, with a compound annual growth rate of 6.07%. Among them, innovative technologies and regenerative medicine will be the main driving forces for market growth.

‘Regenerative medicine, including therapies using stem cells, tissue engineering, and artificial organs, is increasingly valued for its potential to repair or replace damaged human cells, tissues, and organs,’ the report states.

Potential and Forecast of the Future Medical Tourism Market

Furthermore, surgical robots, liquid biopsies, and wearable medical devices will further accelerate the market expansion. A report by Deloitte highlights that the future medical tourism market has great potential. Globally, approximately 11 million people traveled to other countries for medical treatment in 2023. By 2030, the scale of the medical tourism market is expected to reach 437 billion US dollars, with a compound annual growth rate of about 33% between 2023 and 2030. The average cost per cross-border patient is about 3,500 to 5,000 US dollars per visit.

However, it is worth noting that inequalities still exist, which may further increase the challenges and costs faced by the industry in 2024. If not addressed, by 2040, the cost of health inequalities could double, reaching 1 trillion US dollars, or about 3,000 US dollars per person per year. The integration of artificial intelligence and machine learning technologies can play a key role in solving these disparities.

Healthcare Private Equity Transactions Thrive Amidst Inflation and Geopolitical Challenges

A report released by Bain & Company shows that despite rising global profit margins, high inflation, and geopolitical uncertainties, healthcare private equity transactions remain active, with announced transaction values reaching approximately 600 billion US dollars in 2023. The biotech sector, in particular, is robust, accounting for 48% of global transaction volume, with six transactions exceeding 20 billion US dollars each.

Looking ahead, generative artificial intelligence technology is expected to significantly improve productivity, optimize patient and provider experiences, reduce management costs, accelerate biomedical research and development, and aid in the development of a new generation of diagnostic devices. Large technology companies are actively seeking to establish partnerships with medical institutions to promote the application of generative artificial intelligence technologies. Meanwhile, investors are keenly investing in new startup companies in the field of generative artificial intelligence tools.

Tags: HealthcareInnovationTechnology
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